GFI Group has launched a tax receivables desk, providing brokerage services in the secondary market for all forms of tax receivables.
The desk provides tax lien investors with liquidity enhancement through market knowledge, access to a range of potential counterparties and a focus on efficient execution.
The new group will be headed by Thomas R McOsker and Howard C Liggett who have a combined experience of over 38 years in the field.
Liggett currently serves as executive director for the National Tax Lien Association.
Ron Levi, chief operating officer of GFI Group, says: “We believe our new tax receivables desk will fill a much needed gap in the development of the tax lien receivables market. GFI’s technology will enable us to introduce a hybrid (voice and electronic broking) model which will provide structure to the fragmented secondary market” and added, “We firmly believe that GFI is uniquely positioned to enhance liquidity in the USD100bn tax receivables marketplace by leveraging our successes in other illiquid asset and derivative spaces.”
Tax receivables financing is one of the oldest financing models in America. To date, there is no liquid secondary marketplace for institutional clients. Currently, 28 states, the District of Columbia and two territories participate in some form of tax receivable financing.
The desk will provide brokerage services to all forms of tax lien investors, including global financial institutions, hedge funds, private equity firms, regional lien pools, venture capital investors, local and state taxing authorities, corporations and family offices.
